Investors Too Often Misjudge
Performance of Mutual Funds

While many investors aggressively chase hot-performing mutual funds, a new study suggests that many others aren't that well-informed about their funds' relative performance.

The study, conducted online in December with about 4,700 U.S. households by Financial Research Corp. of Boston and Market Facts Inc. of Natick, Mass., shows that investors err by a wide margin in identifying fund companies with the best performance.